Huawei’s profit doubled in 2023 as smartphone, autos business picked up

Huawei’s profit doubled in 2023 as smartphone, autos business picked up

Huawei brought one of the largest displays to the Mobile World Congress in Barcelona in February 2024.

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BEIJING – Chinese telecommunications company Huawei said Friday that its net profit for 2023 more than doubled thanks to better product offerings.

The company also attributed the profit gains to 9.6% year-on-year revenue growth to 704.2 billion yuan ($99.18 billion). Net profit rose 144.5% year-on-year to 87 billion yuan.

Huawei said higher quality operations and sales from some companies also contributed to profitability.

The telecommunications company made a comeback to the smartphone market in 2023 with the silent release of its Mate 60 Pro in China at the end of August. Reviews found that the device offers download speeds associated with 5G thanks to an advanced semiconductor chip. This is despite restrictions on Huawei’s access to high-end technology from American suppliers in place in the US since 2019.

The Mate 60 Pro helped boost Huawei’s sales in China. In the fourth quarter, Huawei smartphone shipments in the country rose 47% year-on-year, putting the company in fourth place in terms of market share, ahead of Xiaomi, according to Canalys. The data showed Apple retained the top spot with shipments growing 6% year-over-year.

Huawei’s revenue rose 0.9% to 642.3 billion yuan in 2022 as the company stabilized its business in a difficult year after revenue fell more than 28% in 2021. Net income fell 69% in 2022, the largest decline on record. At the time, the company cited rising raw material prices, China’s pandemic response and increasing research and development spending.

Huawei also said on Friday that revenue from its smart automotive solutions business rose 128.1% year-on-year to 4.7 billion yuan.

The company sells software and other technology to automakers. The company has also partnered with an automaker for the Aito electric car brand.

Huawei said its consumer business saw revenue rise 17.3% year-on-year to 251.5 billion yuan in 2023.

ICT remained Huawei’s biggest revenue driver by far, with revenue of 362 billion yuan in 2023, up 2.3% year-on-year.

Cloud revenue rose nearly 22% to 55.3 billion yuan.

—CNBC’s Arjun Kharpal contributed to this report.

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2024-03-29 10:11:17